Mr. Mark Wellings reports

EUROTIN ANNOUNCES DRILL RESULTS AND UPDATE ON METALLURGICAL WORK AND PLANS FOR FINANCING

Eurotin Inc. has provided the latest drill results from its Oropesa tin deposit in the region of Andalucia in southern Spain. The company also announces the initiation of a feasibility study, along with all the other technical and legal documentation, necessary for the filing of an application for an exploitation licence with the Junta de Andalucia by the fall of 2017.

In November, 2016, Eurotin commenced a 16-hole infill drilling program at Oropesa in order to better delineate and upgrade known resources to a standard sufficient to establish a commercial open-pit mine. SRK Consulting (UK) Ltd. advised the company on the location and direction of the 16 holes required for the resource upgrade.

Eurotin currently intends to develop Oropesa on a modular basis, commencing with a 150,000-to-200,000-tonne-per-year operation, eventually rising to around one million tonnes per year. It is intended that the starter pit being designed by SRK will have an approximate life of 10 years. The tin grade (using a cut-off grade of 0.20 per cent Sn) of the starter pit's resource is expected to be higher than the figures given for the Oropesa resource in the SRK technical report of October, 2015.

Tin cut-off grade        Tonnes (m)     Tin grade   Contained tin (t 000s)

Indicated at 0.20%              9.2         0.56%                     51.7
Inferred at 0.20%               3.3         0.52%                     17.4

Management believes that the decline in both the value of the euro and the price of crude oil over the past two to three years has significantly improved the economic potential of a future open-pit mine at Oropesa.

Significant intersection of the infill drilling program are shown in the associated table.

  
               From (m)      To (m)   Width (m)    Sn grade

ORPD 192i         146.7       148.8         2.1       0.32%
                  153.8       158.1         4.3       0.30%
ORPD 193i          25.8        31.9         6.1       0.51%
                   43.2        49.9         6.7       0.31%
                   73.0        78.2         5.2       0.29%
                  118.6       121.9         3.3       1.04%
                  148.6       152.1         3.5       1.23%
ORPD 194i         186.3       196.0         9.7       0.31%
ORPD 195i          64.8        78.3        13.3       0.32%
                  103.6       107.7         4.1       0.27%
                  144.1       147.0         2.9       0.36%
ORPD 196i         150.5       167.9        17.4       0.35%
                  176.4       183.9         7.5       0.28%
ORPD 197i         172.1       178.1         6.0       0.29%
ORPD 198i         100.4       113.0        12.6       0.30%
ORPD 199i          70.8        75.3         4.5       1.77%
                   80.3        86.0         5.7       0.28%
                  144.0       149.4         5.4       0.23%
                  152.5       160.0         7.5       0.74%
                  166.0       173.1         7.1       0.86%
ORPD 200i          44.0        46.3         2.3       0.35%
                   51.4        54.0         1.6       0.29%
                  145.6       147.5         1.9       1.05%
ORPD 201i          19.8        27.3         7.5       0.84%
ORPD 202i          62.0        68.9         6.9       2.18%
                   73.0        75.0         2.0       0.92%
                  118.3       120.1         1.8       0.73%
                  141.1       143.3         2.2       0.45%
ORPD 203i          35.3        43.0         7.7       1.48%
                   97.6       114.2        16.6       0.44%
ORPD 204i          12.9        15.0         2.1       0.64%
                   21.3        29.2         7.9       1.41%
                   93.0        97.1         4.1       0.36%
ORPD 205i          79.6       105.6        26.0       0.79%
including          89.5        95.8         6.3       1.52%
                  108.6       113.9         5.3       1.37%
                  155.3       159.3         4.0       1.08%
ORPD 206i          47.6        50.7         3.1       0.36%
                   84.6        89.6         5.0       0.50%
ORPD 207i         104.0       104.9         0.9       4.21%
                  115.9       123.0         7.1       1.66%
                  154.6       158.0         3.4       0.84%
                  161.0       167.0         6.0       0.62%

Notes to the drill results:
All holes were drilled at an angle of dip 
of 60 degrees on an azimuth of 200 degrees.
True widths of the mineralized zones are 
variously interpreted as being between 85 
per cent and 100 per cent of the drill 
intercepts shown.
A cut-off grade of 0.20 per cent Sn was 
used to calculate the intercepts. 
  

In addition to the drill holes shown, three large-diameter (PQ) holes were drilled for metallurgical purposes. An additional amount of 1.75 tonnes of mineralized core is now available for the next stage of metallurgical testwork.

Preliminary metallurgical results

The company is continuing with metallurgical testwork at SGS U.K. Ltd. to optimize the process to be used for the commercial recovery of tin. This process will involve the recovery of tin by both gravity and flotation, using conventional ore processing technology.

The next stage of metallurgical testwork, commencing shortly, will require much larger samples than previously examined, sufficient in size to be processed by a Mozley multigravity separator, which it is anticipated will provide much of the future tin recovery.

More details will be provided on completion of the current stage of testwork, which is expected in early February.

Financings

Over the last year or so the company has been financed by shareholder loans due to the depressed equity market for junior base metal development companies. The company presently has approximately $1,113,000 of such debt outstanding. In 2017 the company plans to address this debt through a debt/equity conversion. The company will also look to acquire further financing through a rights offering or private placement to complete the feasibility study and provide the company with working capital.

Assay and quality assurance/quality control methodology for Oropesa drill core

All core produced is taken daily from each drill site to the company's secure facility in Fuente Obejuna, where it is logged by the company's geologists. This process takes place under the supervision of qualified person Peter Miller.

The core, usually of around one-metre length, which is chosen by the company's geologists for assaying, is then cut in half either at the company's own facilities at Fuente Obejuna or at ALS Chemex's sample preparation facility in Seville in southern Spain.

At the ALS Chemex facility, the cut core is logged into the in-house LIMS (laboratory information management system) tracking system, after which each sample is prepared using procedure code Prep 31. This procedure involves the drying, weighing and fine crushing to 70 per cent passing minus two millimetres. A 250-gram split of the crushed material is then pulverized to greater than 85 per cent passing 75 microns. Samples are then shipped by bonded courier to Vancouver for analysis.

In Vancouver, ALS Chemex procedure ME-XRF10 is used for tin analysis and ME-ICP61 for multielement (33) analysis. The ME-XRF10 procedure uses 0.9 gram of calcined sample pulp, which is mixed with 4.5 g of lithium tetraborate and 4.5 g of lithium metaborate. This mixture is then fused at 1,100 C to produce a flat molten disc, which is subsequently analyzed by XRF (X-ray fluorescence) spectrometry. ALS Chemex analyzes its own standard samples and blanks, plus duplicates, within each set of samples provided by the company. The company recently introduced its own blanks and standards as a further means of checking the accuracy of the assay results. One in every 15 samples analyzed by ALS Chemex is then sent to SGS's laboratories in Cornwall, United Kingdom, for check assaying for tin. The company keeps all its sample pulps and rejects in locked steel containers at its secure storage facility in Fuente Obejuna.

The company recently completed a new check assay program using five certified laboratories. The pulp sample composites used had varying tin grades; the accuracy of the results obtained was within acceptable parameters.

Peter Miller, a qualified person as defined in National Instrument 43-101 and a director of the corporation, has approved the technical contents of this press release.

We seek Safe Harbor.